New entrepreneurs are often torn between buying an existing business and launching a new company from scratch. The decision is not simple because buying an established business has both advantages and disadvantages. Advantages of buying an established business In most cases, buying an existing business is a safer option than starting a new company. Furthermore, […]
Management Buyouts
What Is a Management Buyout? How Are They Financed?
Management buyouts (MBOs) are a common business acquisition strategy. MBOs provide professional managers the opportunity to become business owners. Most MBOs are financed with a high percentage of debt and are considered a specialized type of leveraged buyout. In this article, we discuss: What is a management buyout? Advantages and disadvantages of an MBO The […]